Abuja Journal of Agriculture and Environment (AJAE)

COST AND RETURNS ANALYSIS OF PADDY RICE IN NASARAWA STATE AND FEDERAL CAPITAL TERRITORY ABUJA.
Author(s): Agbonika. D A, E.A Aiyedun and P.O Idisi
Volume/Issue: Volume 1 , Issue 1 (2021)

ABSTRACT:

Considering the ever increasing population growth and urbanization, there is a high need and increasing demand for rice. Rice consumption is no longer a thing of luxury but a necessary staple food for many. This research was conducted to determine the profitability considering the cost and returns of paddy rice production in Nasarawa state and F.C.T, Abuja. Data for the study were collected from 120 randomly selected paddy rice farmers using a well-structured questionnaire and analysed using the descriptive statistics, Net farm income model. The result showed that 77% were male, 80% married and household size of 1-3 people was the highest with 63%. The respondents had 93% formal form of education ranging from primary to tertiary form of education. Cost and Returns analysis for rice production showed total variable cost to be ₦ 81,109.61 and total fixed cost as ₦ 16, 357. The value of output/ha was estimated to be ₦ 201, 383.81 while the net farm income per ha was ₦ 103, 917.33. This finding implies that rice production is profitable. Variability in prices of rice was ranked as the foremost constraints militating against the performance of rice producers as asserted by 95% of the respondents. This study however concluded that paddy rice production in the study areas is a profitable enterprise and recommends that the farmers in the study areas should be encouraged and sensitized in their activities in order to attain self-sufficiency in rice, also consistent government policies that would favour increase in paddy production, market information, extension service delivery, input subsidization and credit facilities be implemented.

KEYWORDS:

Costs and Returns, Paddy Rice, Production, Nasarawa state, FCT, Abuja